India's third largest car manufacturer, Honda Siel Cars India has injected additional funds in order to further strengthen its production capacity. The premium Japanese car brand has planned to increase the capacity, in order to meet the rising demand for two Honda models, Brio and Jazz.
A number of Honda dealers have reported that several customers have expressed their desire to purchase Honda's newly launched hatchback, Brio. However, car dealers have asked the consumers to wait for a period of four to five months, before the deliveries are made. The latest car from Honda, launched merely 15 days back, is a compact five seater hatchback. Similar is the case with the premium hatchback Honda Jazz.
Considering the increase in demand, Honda has started the process of improving its capacity, which is being initiated at the Honda headquarters in Noida. President and Chief Executive at Honda Siels Cars India, Takashi Nagai said, “I hope Brio will sell more than 40,000. If that is the case, we might be able to take the next step of expanding further.”
The demand for Honda's premium hatchback, Jazz reached new highs when the company decides to slash the prices by Rs. 1.6 lacs during August. Currently, the waiting period for this model in some cities have stretched till March. Honda Jazz has been overcoming tough competition from models like Skoda Fabia and Hyundai i20.
Before the launch of Honda Brio, the company's plant was engaged in manufacturing 60,000 units per year, producing models such as Civic, City, Jazz and Accord. However, the strategies have been moulded in accordance with Brio and Honda now aims at selling 5,400 plus units every month.
Honda has another production facility located in Tapukara, Rajasthan, the unit which was established in 2008 and has an installed capacity of 60,000 units per year. However, the plant is not engaged in car manufacturing currently. The facility only makes crucial parts for all Honda cars in India and overseas market.
The company is planning to carry out a feasibility study, to weigh investment plans, at the Rajasthan unit and intensify the vehicle production at the plant, for upcoming models. Takashi Nagai also commented that, “We have not finalised the investment or expansion plans at Rajasthan. We will take further judgement only after looking at the performance of the Brio. We will be making a feasibility study for another investment.”
